View from the Bridge
Seed Funds Need Fertile Soil
As analysts in the venture capital space, our team at MJ Hudson Allenbridge have conversations every week about different venture funds’ investment criteria, as managers and investors look to identify promising entrepreneurs and profitable ideas. So too, when outside the office, our team is often greeted with a startup idea, or is told about a new venture that someone has just embarked upon, often with the expectation of some words of wisdom or titbit of advice.
Probably the most shared piece of advice for young entrepreneurs looking to start their own business, which also could serve as a basic filter for investors taking a first look at an idea, might well have been given by Paul Graham, the famous American entrepreneur who started the renowned Silicon Valley startup accelerator “Y Combinator”. In his essay “How to Start a Startup”, Graham argues that, deep down, a start-up only really needs three ingredients: “to start with good people, to make something customers actually want, and to spend as little money as possible”.